First details emerge of GOP's sweeping tax bill

The Hill ^ | 11/02/2017 | NAOMI JAGODA AND SCOTT WONG

[GIdget2004]

House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.

The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.

In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.

The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.

The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.

Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.

“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.

Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.

[NormsRevenge]

How about we eliminate COINgre$$ ? Just think of all the money we could save. :-)

[Mariner]

In CA, NY, NJ and IL there are 34 Republican House members.

None will vote for this bill as it would be suicide for them.

Their core constituency gets hammered.

[bigbob]

Countdown til RINO sniping begins...

[vooch]

a good start - the corporate side will generate millions of good middle class jobs.

[Jonny7797]

Still no detail on the width of the brackets. WTF?

[C210N]

Well, we don’t need a Congress AND a judiciary, kind of redundant these days.

[TangledUpInBlue]

That’s likely very true. Although I have to say, it would be easier to understand this summary if there weren’t so many typos in it. Cripes.

I’m sure my inbox will fill up with blasts from CPA firms by this afternoon, but I have to say, the only negative way this would impact me is by limiting the deduction for real estate taxes. (and even then, not by much)

Repealing the AMT is BIG win. Reducing rates is a big win. Lowering the Corporate rate would spur economic investment and development the likes I’ve never seen in my 30 year tax career. Not even under Reagan.

If they could factor in a low rate/one time repatriation of offshore earnings, we’d be up to our necks in job growth. We wouldn’t have to worry about making up for lost revenue. It’s so friggin’ obvious. My colleagues and I discuss this all the time but for some reason, the lobbyists don’t include such a measure.

[fella]

They need to cut spending.

Instead they’re going with the old magic trick of a tax relief bill that give us higher taxes.

[MMaschin]

Still no detail on the width of the brackets. WTF?

Agreed. I don't see how people can say they are going to pay more, when they have no idea what bracket they will be in.

[so_real]

Where can *We the People* read it?

[MMaschin]

Instead they’re going with the old magic trick of a tax relief bill that give us higher taxes.

Please show me where you found information showing what bracket you will belong. I haven't been able to find that information anywhere.

[SkyPilot]

In CA, NY, NJ and IL there are 34 Republican House members. None will vote for this bill as it would be suicide for them. Their core constituency gets hammered.

They last framework bill passed 216-212. In that one, all of the California Republicans voted for the Senate version of the budge. I am not sure they will have them this time. While the latest tax bill does allow for some property tax deduction relief, that primarily helps states like NY and NJ. However, taxpayer in CA pay more in local and state taxes in other areas, because of Proposition 13. Therefore, I am not certain Paul Ryan will have the CA House GOP votes.

As we have been discussing for weeks, this bill is a disaster for millions of taxpayers. Because they wanted it to be "revenue neutral" - they chose to pick winners and losers. The clear winners are the corporations. The losers will be millions of middle class families, many who will have their Federal taxes raised under this bill.

Yes, I know that cutting taxes on corporations will lead to growth, and generate more revenue. That isn't the point. The GOP chose to raise taxes on millions of other Americans in order to "pay for" the cuts to corporations. Anyone who disputes that basic fact is dishonest or completely ignorant of the facts.

[mrsmith]

“repatriation of offshore earnings”

Yeah, have they given up on that? Seems it would be in this bill. Maybe it will come in the Senate version.

[SkyPilot]

a good start - the corporate side will generate millions of good middle class jobs.

And a bad deal if you are on the of middle class taxpayers whose taxes are going up in order to "pay for" the corporate rate to be slashed.

[eyeamok]

“were floated to help pay for the bill”

if more people understood how the budget process worked, they could not play these games.

There is NO Relationship between Spending and Taxes. ALL Taxes Received are used to pay off PREVIOUSLY Issued Treasury Bills. There is NO Discussion of Last Years tax receipts EVER in the Budget Process, it is Irrelevant.

100% of ALL SPENDING at the Federal Level comes from Freshly BORROWED Money from the Fed.

Tax Receipts from the previous year are never and have Never been part of the equation regarding the Budget.
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[Mariner]

Does anyone really believe the 12% bracket will reach up to $150K?

Because if it does not there are millions who now itemize who already KNOW they are screwed.

The math is not that complicated and nuanced is simple if you do your own taxes.

If you’re over $100k and under $250k and itemize you will send more money to DC under this plan.

As certain as the day is long.

[TangledUpInBlue]

I don’t know if they’ve left it out yet or if the article just didn’t mention it. I can add some insight though.

In speaking to clients and to my own Executive Management here, it would have to be a DEEP DEEP cut in the rate - say to 5% or thereabouts or have NO TAX at all. Simply reducing it to say 15 or 20% isn’t enough incentive to bring the money back. I’ve been told many times “Why bother?”. It’s got to be deep, or companies will just leave it where it is. ESPECIALLY, if they don’t “need” the money here. And there are legal ways to borrow money from overseas subsidiaries without triggering tax. So again, it must be a deep, deep cut.

[Okeydoker]

Absolutely correct. This is a ryan brady rino chamber of commerce bill to raise taxes to pay for their corporate donor tax cut. Pure and simple.

[GIdget2004]

“Where can *We the People* read it?”

The text is supposed released within the hour.